Despite market fears that demand would drop off after incentive cutbacks in essential European markets, such as Germany and Italy, come second-half 2010, chairman and CEO Xiaofeng Peng is calling for wafer and module shipments of 1.7 GW to 1.8 GW and 200 MW to 300 MW, up from 2009 year-ending estimates of 1.1 GW and 34 MW, respectively.
“The improvement in ASP trends throughout the year should allow us to expand our gross margin in the next few quarters,” said chief financial officer Jack Lai on the recent earnings call with investors. “Recent polysilicon feedstock prices reportedly below inventoried first-quarter costs of $65 per kilogram should help to boost gross margins in the next few quarters by as much as 300 basis points, up from the 15.7 percent posted in the first quarter.”
Will innovative manufacturing gains, such as increased throughput and conversion efficiency yields, help LDK avoid the commodity cliff being predicted for solar wafer makers by many semiconductor industry pundits? Read More ….
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.